U.S Tax Reporter Year End 2023

[graziela]

Another Year with our U.S. Tax Reporter Year End blog. If you have questions about 2023 Year-End reporting, you can post it here. This blog will be updated with tips, best practices and, SAP Notes related to this subject.

Legal Changes for US

To review the planned Legal changes for US, start the Announcement of Legal Change application. You can find detailed information about the Announcement of legal changes on this blog.

ASUG Webcast

ASUG Webcast: HCM U.S. Payroll and Tax Reporting 2023 Year End Update 

ASUG Webcast for SAP HCM U.S. Payroll and Tax Reporting 2023 Year End Update was conducted on October 5, 2023.

Recording and slide deck for the ASUG webcast can be found at the event page on ASUG website. Slide deck is also attached to SAP Note 3357714.

Notes to be implemented after the Year End Support Package

3415649 - REC: RPCPRRU0 report incorrectly considering the amount of wage types as negative
3411592 - Reconciliation report scheduler: replacing background options values with default values
3397030 - REC: Payroll Reconciliation Report incorrectly considering wage types as tax type
3386241 - REC: RPCPRSU0 report background jobs getting cancelled when no ALV Variant is provided
3383757 - REC: Wage type side effect correction for Payroll Reconciliation Report
3379534 - REC: RPCPRSU0 report spool request not generated when Background Processing option is selected
3407068 - TAX: PPE parameter incorrectly sent in payment types other than regular
3381685 - TR: Form W-2 not being generated for employees that have only manual entries for a Tax Company
3402664 - TR: Medicare wages in W-2C reported even with no changes to Social Security wages

Year End Notes

3357714 - U.S. Tax Reporter Year End 2023 Announcement
3358191 - Year End 2023 Phase I for U.S. Tax Reporter
3377633 - TR: Year End 2023 Phase II for U.S. Tax Reporter
3412754 - TR: Year End 2023 Phase III for U.S. Tax Reporter
3419714 - TR: Year End 2023 changes to the electronic file formats W-2 and W-2C for Puerto Rico)
3357769 - W-2 / 1099-R Forms, Envelopes and PR Approval letter for year 2023

User Guides and Resources

3368649 - SAP HCM U.S. Tax Reporter Solution Document

2464078 – TR: 1099-R User Guides for HCM US Tax Reporter configuration

2464161 – TR: W-2 User Guides for HCM US Tax Reporter configuration

2463999 – TR: Tax Reporter User Guides for HCM US Tax Reporter configuration
1406971 – FAQ: Troubleshooting PDF Forms in US Tax Reporter
544849 – FAQ: Tax Reporter Note

 In addition, detailed Tax Reporter documentation for EHP8 is available on SAP Help Portal. To get Tax Reporter documentation of an older release click in the portal on SAP ERP HCM, then change the version on the upper right corner, and search for “Tax Reporter (PY-US-TR)”.

KBAs (Knowledge Base Articles)

3081097 – KBAs (Knowledge Base Articles) for Payroll USA
2918093 – After upgrade issue with the position of text and alignment

 

Annual Limits

3398804 - BEN: Annual limits year 2024
3349693 - BEN: Limits for HSA in tax year 2024
3417661 - GARN: IRS Publication 1494 for tax year 2024

 

Educational Videos

2480185 – TR: Tax Reporter – Online W-2 Enhancements videos

Kind regards,
Graziela

[landerosr]

I am generating a few errors when runnning a test W2. Do you have any input please.

Error in generating the PDF form: HR_F_W2_07

Error in generating the PDF form: HR_F_W2_AUDIT

[CarlosAccorsi]

Hello Raul,

The error "Error in generating the PDF form: XXXX" is related to ADS misconfiguration.
So, please check the following SAP notes for troubleshooting:

1406971 (FAQ: Troubleshooting PDF Forms in U.S. Tax Reporter).
944221 (Troubleshooting if problems occur in forms).

Happy Holidays!
Carlos

[afunck]

Thank you!

[landerosr]

Ok I will get with my Basis team. Thank you.

[former_member548187]

Graziella,

We had an issue with our benefits provider that caused all the employees to retro back to the beginning of the year.  When that happened, we found that the federal taxes were being refunded at rather large amounts, some at almost 10%.  All the people affected had several IT210 changes throughout the year.  This only happened after we applied the support packs and I was wondering if anybody else was experiencing this issue.

Steve French

[duane_cornforth]

Steve,

Did your benefit issue relate to a pre-tax benefit deductions being larger than what had been deducted throughout the year?  We saw a scenario where our benefit provider was trying to true up the HSA plan at the end of the year and instead of changing the deduction for the last x periods, they used a 1/1/2023 effective date.  This would have caused a year-long retro for many employees.  We found it and were able to stop the retro, but that along with IT 210 changes could cause some tax refunds.

Duane

 

[former_member548187]

Duane,

Thanks for the reply.  I thought that was the issue at first, but this only seems to be happening to employees that are constantly changing their IT210 tax allowances.  It might be a combination of the two things.  I'm still investigating that.

Steve

[amrice]

We are processing W-2c's for 2022 and noticed we have paper forms for employees who are not on the temse file.  The W-2c is for box 5 and the corrected and original amounts are the same amount.  It isn't just for one or two employees (we have approximately 86,000) but for MOST of our employees.  Any ideas what would cause this?  Even better - how do I correct it?!  We don't want to print all those forms or have this displayed in FIORI.

[juli_thompson]

Good morning,

We have applied the Phase III note and I'm having trouble with populating the Third-Party W2 Layout (HR_F_W2_TP_TEMPS) setup with the Oregon PFML reporting.  The text value for the Federal H Record field 627 is reporting correctly as OR PFML but field 634 for the amount is not populating.  The value is setup to pull directly from '$W2_TP_ORPL_PFML_VALUE$'.

Is anyone else having an issue with reporting this value?

Juli

[mbjohnson]

Hello.

It looks as though since applying latest support packs and year end phase notes we are seeing where Tax Reporter is no longer generating 941s or W2's for employees that only have payroll results entered via IT0221 manual entries.  I can see in the payroll results that the employee has /701,/Q01, /401 etc. however no forms are being generated.

Anyone seen this issue?

[MandarMuley]

Hello

IRS released publication 1494 changes for year 2024. When do we expect SAP to release the note for the same?

Thanks

Mandar

[graziela]

Hello Matt,

If you don´t have create a case yet.
Could you please open it?

Thank you,
Graziela

[graziela]

Hello Mandar,

Developers are working to delivery this note.
I don´t have a data yet, once it´s ready I will update the blog.

Kind regards,
Graziela

[graziela]

Hello Aimee,

Attached to SAP note:
2464161 - TR: W-2 User Guides for HCM US Tax Reporter

There is an user guide: W-2 Post filing run User Guide.

This might helps you.

Kind regards,
Graziela

[graziela]

Hello Juli,

I didn´t see any other customer complaining about this.

Do you see ORPL in PCL4?
Is the correction instructions for note 3412754 fully implemented in SNOTE transaction?

If so, could you please open a case, so I can investigate it?

Thank you,
Graziela

[graziela]

Hello Mandar,

The announcement of legal change is released:
Announcement of Legal Changes - SAP for Me

The planned release date is 05.01.2024.

Kind regards,
Graziela

[richaknotts79]

Thanks Graziela. We applied this note in our system and noticed that the format change is there but the form name did not change. It still says HR_F_MMREF_UI_NC).

Can you please advise if the name can be changed?

Best,

Richa

[CecileO]

Hi

In testing Alabama, we noticed that if an employee have retro-active changes to OT hours, it does the update in the retro period. So if the employee has a reduction in OT retro actively, the taxes is refunded in the retro period.  I was wondering if this was intentional since taxes is normally calculated when paid and not when earned. And if it will cause problems when reporting.

Thanks,

Cecile

[ChandraV]

FYI - the IRS tax levy (Pub 1494) note for 2024 is available now - 3417661 - GARN: IRS Publication 1494 for tax year 2024.

[graziela]

Hello Matt,

SAP note has been released to solve this issue:
3381685 – TR: Form W-2 not being generated for employees that have only manual entries for a Tax Company

Kind regards,
Graziela

[nitisha10]

Hello Graziela,

I am also looking for an update on how and whether WA cares fund will be reported on W2? Will SAP be providing an OSS Note for this requirement?

Thank you.

[Matt_Fraser]

Chandra,

Updates to the Foreign Earned Income Exclusion are usually delivered by BSI as a Regulatory Update. This was most recently updated with TUB 128, the same one that delivered the 2024 Federal Withholding Rate updates.

Cheers,
Matt

[ChandraV]

Thanks matt.fraser. So, I'm guessing we dont need to maintain the FEIEL limits in T511K  anymore? or, should we update them ourselves whenever BSI/IRS provides the update?

[Matt_Fraser]

Chandra,

I'm afraid I'm not able to answer that (I'm Basis, not functional; I apply the TUBs, but I leave most of the configuration to my team's payroll expert).

[ChandraV]

No worries, thanks for the info.

 

Thanks

Chandra

[former_member649267]

Hi Team,

Iowa W4 changes... Any idea when SAP will release a note for the above along with BSI changes? Need your input.

 

[former_member649267]

Hi Chandra,

New Iowa W4 changes... Any idea when SAP will release a note for the above along with BSI changes? Need your input.

[CarlosAccorsi]

Hello Hemanth,

The developers are currently working on that.
They don't have a planned delivery date, but I'll let you know by this blog once it's released.

Thank you,
Carlos

[SAPSFHXM]

3416901 - ACA: Warning message while generating XML 2023

This will fix the XML warning message.

[nitisha10]

Hello,

I am looking for an update on how and whether WA cares fund will be reported on W2? Will SAP be providing an OSS Note for this requirement?

Thank you.

[graziela]

Hello Richa,

There isn´t any plan to change the name, as this is a new version of the form, the name remains the same.

Kind regards,
Graziela

[ChandraV]

Hello SAP Team, it appears the Montana W4 changes note (3416373 - TAX: Montana Reduced Withholding (Form MW-4) - PA30 changes) contains only changes to Infotype 210 for Montana (Reduced Withholding); however, the tax calculation doesnt appear to consider this new reduced withholding field.  This is what BSI says in their quick formula for MT W/h -

B. VOLUNTARY REDUCED FLAT AMOUNT WITHHOLDING METHOD

This method uses the Voluntary Data Command (VDC) and the Additional Tax Parameter (AT:24) in combination with the Additional Amount Parameter (AA:) to input the employee’s elected flat amount to be withheld from each paycheck.

FORMULA DESCRIPTION

Use the Additional Amount Parameter (AA:) to enter the requested amount of voluntary withholding to be withheld from each paycheck.

I dont see any of these in the BSI interface after applying this note. Can you clarify? I haven't opened a ticket but can open one.

Thanks

Chandra

 

 

[CarlosAccorsi]

Hello Chandra,

Would you please open a case for this scenario?
I will check the scenario on your system then.

Best Regards,
Carlos

[ChandraV]

Thanks Carlos. Just opened a case (25393/2024).

Thanks

Chandra

[CarlosAccorsi]

Hi Chandra,

I took over the case.

Thanks,
Carlos

[alicia_robinson]

graziela.dondoni

I'm not sure who still uses the Audit Report produced in tax reporter, but I noticed that it is not putting both companies on the output.  It shows all data under the active company for the employee, but it is separated in two different totals.

[ChandraV]

Hello SAP Team - question on the SAP-BSI Sync. We are at level 130, right now.

In TUBs level 124, there were few updates for California tax type 041, 048, 077 and 081 - effective 1/1/2024, the maximum wage ceiling has been removed and the rate has been increased for 041, 048 and 081 and remained unchanged for 077. However, these updates never made it into the SAP table T5UTX. T5UTX still has the old maximum and rate %.  Shouldnt the BSI sync program update T5UTX  for these tax types during the synchronization process? I found other tax types updated in T5UTX but not for these four.

Note that this is not an issue because the tax calculations are happening as expected (with the new rates). Just that I found it strange that the T5UTX is not reflecting the latest updates.

Thanks

Chandra

[CarlosAccorsi]

Hello Chandra,

For most scenarios, table T5UTX is not used for tax calculation, since the rates/ceiling are taken directly from the BSI database.
However, this is a know issue that the developers are checking it with BSI team, since T5UTX is updated by the data sent by BSI (SAP does not change it).

Please open a case addressing this scenario and I'll follow-up with you.

Thank you,
Carlos

[ChandraV]

Thanks Carlos. Case# 31262/2024.

 

Thanks

Chandra

[amrice]

Thank you for your reply.

 

We have reviewed the document and applied the YE Phase III note.  We noticed that in another client that has not been patched the issue is not occurring - data is the exact same in both clients.  This did not happen when we ran W-2c's in September (again before patching) in our production client.  It is also happening for other years - 2020, 2021, 2022, and 2023.

Our configuration has remained the same except for patching.

This is currently preventing us from issuing W-2c's because Box 5 is displaying the same amounts for everyone - even if they had a valid change in another box.

Should I submit an issue?

-Aimee

[graziela]

Hello Aimee,

Could you please open the case and I will check it for you?

Thank you,
Graziela

[CarlosAccorsi]

Hello Community,

We've just received a communication from BSI that this issue will be resolved by them on Regulatory Bulletin 132.

Kind Regards,
Carlos

[amrice]

Case 38136/2024 has been created.  I will contact our Basis and Security Administrator's to open our DEV and E2Q clients for you.  It is happening it DEV, QA, and Production.  All have been patched.  E2Q has not been patched and it the issue is not present in that client.

 

Thank you.

[graziela]

Thank you!

 

[former_member824657]

Hi SAP Experts,

We had added Filing date and generating W2C for employees when required; seeing couple of issues with W2C's generation a) Medicare Wages and Tips (Box 5) is presented for every employee for whom w2c's are run even when there is no change. b) When generating W2C for employees with SSN change, old SSN is not presented in box F: Employee's previously reported SSN . Is anyone else having the same issue?

 

Thankyou

 

Anjali Nelson

[graziela]

Hello Anjali,

Please, implement SAP note:

3402664 - TR: Medicare wages in W-2C reported even with no changes to Social Security wages

Kind regards,
Graziela

[former_member824657]

Thankyou so much for your Quick response!

[CarlosAccorsi]

Hello Community,

SAP Note 3419714 (TR: Year End 2023 changes to the electronic file formats W-2 and W-2C for Puerto Rico) has just been released.

Sincerely thanks,
Carlos

[ChandraV]

Hello carlos.accorsi is your response for Montana reduced w/h issue or T5UTX issue? I presume Montana.

Thanks
Chandra

[CarlosAccorsi]

Hello Chandra,

My response was for the T5UTX issue.

Best,
Carlos